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Beijing News (Reporter Chen Lin) On July 31, the reporter learned from the State Administration for Market Regulation that in the first half of this year, the State Administration for Market Regulation concluded 297 cases of concentration of operators, of which 282 were approved unconditionally. In addition, the applicant withdrew 14 applications after acceptance, and approved the acquisition of the equity of Tozda Wire Co., Ltd. by JX Metal Co., Ltd. with additional restrictive conditions.

Among the cases concluded, the vast majority were simple cases and were concluded in the preliminary examination stage (30 days after acceptance). Overall, the national economy continued to recover in the first half of the year, domestic M&A transactions were relatively active, state-owned enterprises continued to play the role of ballast in the M&A market, private enterprises' confidence in M&A improved, and there were more M&A transactions in the real economy manufacturing industry.

In terms of case types, the vast majority of operator concentration cases were simple cases and were closed at the preliminary review stage. In the first half of this year, a total of 262 simple operator concentration cases were concluded, accounting for about 88%; a total of 256 cases were closed at the preliminary review stage, accounting for about 86%.

In terms of transaction amounts, cases exceeding RMB 100 million accounted for a large proportion. There were 193 cases of concentration of operators with transaction amounts of RMB 100 million (the same currency below) or more, accounting for about 65%; there were 94 cases of concentration of operators with transaction amounts of RMB 1 billion or more, accounting for about 31%; there were 19 cases of concentration of operators with transaction amounts of RMB 10 billion or more, with the largest single transaction amount being RMB 110 billion.

In terms of the types of domestic and foreign concentration, domestic enterprises have a high enthusiasm and activity in investment. The number of cases of concentration between domestic enterprises is the largest, at 170, accounting for about 57%; the number of cases of concentration between foreign enterprises is 89, accounting for about 30%; and the number of cases of concentration between domestic and foreign enterprises is 38, accounting for about 13%.

From the perspective of ownership structure, state-owned enterprises continue to play a ballast role in the M&A market, private enterprises have better confidence in M&A, and the intention of cooperation between state-owned enterprises and private enterprises has increased. There were 163 cases involving state-owned enterprises participating in concentration, accounting for about 55%; 122 cases involving private enterprises participating in concentration, accounting for about 41%; 81 cases involving both state-owned and private enterprises, accounting for about 27%; and 119 cases involving foreign enterprises participating in concentration, accounting for about 40%.

From the perspective of industry distribution, transactions mainly focus on the real economy and people's livelihood. The real economy manufacturing industry has the largest number of cases, with 101 cases, accounting for about 34%; other industries with a large number of transactions include water, electricity, gas and heat production and supply, wholesale and retail, finance, real estate, information technology services, transportation, etc.

In terms of transaction types and model characteristics, horizontal concentration is the most common, and equity acquisition is still the main transaction model. There were 168 cases of horizontal concentration involving peer competitors, accounting for about 57%; 114 cases of vertical concentration involving upstream and downstream companies, accounting for about 38%; and 109 cases of mixed concentration without horizontal and vertical relationships, accounting for about 37%. There were 156 cases of concentration in the form of equity acquisition, accounting for about 52%; 145 cases of concentration in the form of joint ventures, accounting for about 49%; and 27 cases of concentration in other forms such as new mergers, asset acquisitions, etc.

From the perspective of the place of registration of enterprises, the enterprises involved in the concentration of operators come from more than 30 countries and regions around the world. Overseas enterprise concentration mainly involves countries such as Japan, the United States, France, Singapore, and the United Kingdom. In China, Beijing, Guangdong, Zhejiang, Shandong, and Jiangsu are the top five provinces (cities) with the largest number of places of registration of enterprises involved in the concentration.

Edited by Zhang Qian

Proofread by Li Lijun